#Canada #Toronto #Gold Mine #Hemlo Mining #Electrical Substation

Hemlo Mining Corp. Reports Underground Electrical Substation Outage

Hemlo Mining Corp. (TSX: HMMC) (OTCQX: HMMCF) has reported an electrical outage impacting an underground substation critical to its mining operations at the Hemlo Gold Mine. This incident occurred on September 4, 2026, and it primarily affected the Alimak production area located on the mine’s 9765 level. Fortunately, there were no injuries reported, and all personnel in the underground site at the time were safely evacuated to the surface.

Despite this outage, Hemlo Mining has confirmed that operations in other areas of the mine, including the processing plant, continued unaffected. Identifying the need for immediate action, the company performed a detailed assessment of the damaged infrastructure and began implementing repair plans to restore full functionality as swiftly as possible.

In the interim, Hemlo Mining has set up a temporary electrical bypass system providing reduced power capacity to the affected Alimak area, allowing some mining activities to persist while limited operations are resumed during repair efforts. The company previously anticipated the delivery of a replacement substation to be ready by December 2026, costing around $250,000.

Moreover, as part of enhancing operational resilience, Hemlo Mining is actively pursuing supplementary measures that include expedited equipment procurement and backup power options. They are also exploring possibilities of relocating parts of the electrical infrastructure from other sections of the mine in order to expedite the overall restoration process.

An important note from Jason Kosec, President, CEO, and Director of Hemlo Mining, highlights the company's commitment to safety and effective management. He stated, “Our primary concern was the workforce’s safety, and I am relieved there were no injuries tied to this substation outage. We have been able to implement temporary power solutions that support key mining activities while further exploring alternative solutions to restore full operating capability.”

In terms of production, the electrical outage may lead to delays in mining operations for certain planned stopes pending the restoration of full power. However, mining continues unabated throughout the remainder of the operation, which still functions under full capacity.

To mitigate potential production impacts from this incident, the company is assessing different mine sequencing options, ensuring that ongoing development and mining activities in other parts of the operation proceed as planned.

Looking at the overall health of Hemlo Mining, the Hemlo Gold Mine has been operational since 1985, producing approximately 25 million ounces of gold from both underground and open-pit mining operations. The current management emphasizes a dedicated approach intent on maximizing the mine's value through improved efficiency and extension of its operational life.

With over 300 kilometers of existing mine development and multiple sections actively engaged in mining, Hemlo Mining retains significant operational flexibility — a crucial advantage during disruptions such as this substation incident. Continuous monitoring and adjustment of production strategies ensure that the overall performance of the Hemlo Gold Mine remains robust despite localized challenges.

In conclusion, while the electrical substation outage has posed temporary production setbacks, the proactive measures and swift responses from Hemlo Mining teams are pivotal in minimizing the impact on overall operations. The company's focus remains on safeguarding employee welfare while ensuring the continuity of its gold production endeavors.